Leasehold - Joining Right To Manage - Advice

Andrew_P

Hi All

Was just looking for some advice my wife and I are unsure what to do.

My wife and I are buying a leasehold flat and have had a letter through from the solicitors advising we can apply to become a member of the RTM company within our block of flats. There are 40 flats in total, however i believe only 6 lease holders are members of the RTM and the flat we are buying is one of the 6.

Just wanted some advice on what to do, is it advisable to become a member of the RTM? Would we be responsible for sorting out problems, and also sorting things out should any other owners/tenants come to us with problems? These are the things what are putting us off, but thought would seek advice as don't know to much about these types of things.

We have to send our signed acceptance form off by the end of the week, so anyone with any advice or who has had experience of this would be greatly appreciated.

Many thanks

Andrew

G_M

This is an existing company yes? Which currently manages the block? As opposed to an application to manage?

By being a member you get to influence what work is or is not done to the building, when, and at what cost.

Personally I'd want that influence. One of the biggest negatives of being a leaseholder in a block is being at the mercy of the freeholder/management company - just read some of the stories on the forum!

It's also a great way to get to know the neighbors (unless you consider that a downside....)

The other downside is that yes, you'll need to devote some time to meetings etc .

benjus

I would certainly become a member. Would this also involve becoming a director of the RTM company? That's less clear-cut as it could have other consequences (e.g. you'd have to fill in a self assessment tax return even if you currently pay all your tax via PAYE).

bouicca21

Personally, if this was on offer I'd join Instantly.

Andrew_P

G_M wrote: »

This is an existing company yes? Which currently manages the block? As opposed to an application to manage?

By being a member you get to influence what work is or is not done to the building, when, and at what cost.

Personally I'd want that influence. One of the biggest negatives of being a leaseholder in a block is being at the mercy of the freeholder/management company - just read some of the stories on the forum!

It's also a great way to get to know the neighbors (unless you consider that a downside....)

The other downside is that yes, you'll need to devote some time to meetings etc .

Its an existing company as far as I am aware from what the solicitors have said

What I am confused about is there is also a managing agent involved, but I think they are only involved as and when work needs to be carried out for example hiring the any contractors etc. From the paper work that we have received from our solicitors the day to day management of the building and the budgets etc is managed by the RTM company. Would you say this sounds right?

Thanks everyone for your advice so far

chris_m

Andrew_P wrote: »

What I am confused about is there is also a managing agent involved, but I think they are only involved as and when work needs to be carried out for example hiring the any contractors etc. From the paper work that we have received from our solicitors the day to day management of the building and the budgets etc is managed by the RTM company. Would you say this sounds right?

Sounds about right to me.
Where I am, and estate of 36 flats, all the flat owners are shareholders in the management company (it's actually a requirement upon purchase, not an option) and we all manage the estate. The Directors make the general decisons and recommend large/expensive ones for the whole company to decide - well, a straight majority of those who can be bothered to turn up to the meeting called for that purpose, or the AGM if a special meeting isn't needed.
We employ a managing agent to do the legwork - collecting service charges, employing and paying cleaners/gardeners/builders/handymen, etc. In most cases, if something needs doing it's the managing agent who seeks estimates/quotes for the work then offers/recommends the choices to the Directors and/or all shareholders.
In our situation, it works very well. The agent does a very good job for us (and has done for over 20 years, so he knows the estate and what work has been done, etc.) and, because "we" own it all we have no possible excessive charges because there is no-one trying to cream off profits.

Andrew_P

chris_m wrote: »

Sounds about right to me.
Where I am, and estate of 36 flats, all the flat owners are shareholders in the management company (it's actually a requirement upon purchase, not an option) and we all manage the estate. The Directors make the general decisons and recommend large/expensive ones for the whole company to decide - well, a straight majority of those who can be bothered to turn up to the meeting called for that purpose, or the AGM if a special meeting isn't needed.
We employ a managing agent to do the legwork - collecting service charges, employing and paying cleaners/gardeners/builders/handymen, etc. In most cases, if something needs doing it's the managing agent who seeks estimates/quotes for the work then offers/recommends the choices to the Directors and/or all shareholders.
In our situation, it works very well. The agent does a very good job for us (and has done for over 20 years, so he knows the estate and what work has been done, etc.) and, because "we" own it all we have no possible excessive charges because there is no-one trying to cream off profits.

Cheer Chris that makes things a bit clearer

According to our paper work its optional to become a member of the RTM company and from what everyone has said on this thread it certainly seems a good idea to join.

muppetfactory

Hi All,
Sorry to jump in here but, as a member of an RTM I have a current real problem.
One of our directors of the RTM has taken over the management (but not the collection/accounting of monies) but the maintenance, the other three directors don't really care as long as they don't have to do any work. He refuses to communicate with any other members of the RTM. We have no knowledge of what is going on in the building and what he has decided to spend our money on. Currently the flat across the hall from me has had a leak for three years and he point blankly refuses to deal with it and will not allow an independent specialist to inspect. We constantly have problems with hot water and heating and the building is starting to look really tatty. I know from our Articles of Association that we need 20% of the members of the RTM to call a general meeting. However most of our block is rented out and I don't have any contact details for many of the landlords. The situation is becoming more and more untenable but it seems our hands are completely tied and he controls everything. I would much rather have a managing agent and not a tyrant. I was under the impression that there needs to be 50% of the total flats in the building to become members in order for it to remain as an RTM.

Any help anyone?

Slithery

@muppetfactory

Can you start your own thread instead of bumping a 2 year old one please.

eddddy

muppetfactory wrote: »

Hi All,
Sorry to jump in here but, as a member of an RTM I have a current real problem.
...

It's better to start a new thread to avoid confusion, but anyway...

The RTM company takes over the freeholder's management responsibilities. So they only have the rights that the lease gives them - they can't do whatever they wish.

And you are still a leaseholder, so you have all the rights that the lease and the law.

So as a leaseholder, your rights include...

• The right to challenge service charges that you believe are 'unreasonable' (e.g. they are for things not mentioned in the lease, or they are done in an unreasonably expensive way.)
  See: https://www.lease-advice.org/faq/i-have-received-a-service-charge-demand-and-i-think-it-is-too-high-what-should-i-do/

• The right to see invoices, receipts etc for any work that you are being asked to contribute towards.
  See: https://www.lease-advice.org/faq/how-can-i-find-out-what-my-service-charge-is-being-used-for/

And more generally: https://www.lease-advice.org/faqs/?topic=service-charges

Equally, if the RTM company isn't maintaining the property in the way the lease says they should, there are steps you can take to force them to.

See: https://www.lease-advice.org/faq/who-is-responsible-for-repairing-and-maintaining-the-property/